Is Kazakhstan Chaos Really What’s Leading To Bitcoin Crash? – Bitcoin – United States Dollar ($BTC)

Mass protests in Kazakhstan on Wednesday were affected by skyrocketing fuel prices Bitcoin (CRYPTO: BTC), the world’s largest cryptocurrency by market capitalization.

What happened: Pushed political turmoil President Kassym-Jomart Tokayev He dissolved his government on Wednesday and declared a two-week state of emergency in the Central Asian country.

State-owned Kazakhstan Telecom, the country’s largest telecommunications provider, has shut down internet access nationwide after the protests began.

The internet outage reduced Bitcoin’s overall network hash rate by 13.4% from around 205,000 petahashes per second (PH/s) to 177,330 PH/s, according to data from YCharts.com.

Larry Cermak From the crypto news and research site Bloc He also tweeted about the Bitcoin hash rate dropping due to the internet outage in Kazakhstan.

See also: How to buy Bitcoin (BTC)

why does it matter: Kazakhstan currently ranks second in the world in terms of bitcoin mining hash rate, accounting for about 18% of network hash activity.

Kazakhstan saw an influx of bitcoin mining companies after neighboring China banned bitcoin mining last year.

Chinese Cryptocurrency Mining Corporation BIT Mining Ltd. (NYSE: BTCM) announced in June of last year that it was in the process of starting mining operations in Kazakhstan.

In January, the PC manufacturer Canaan Company (NASDAQ:CAN) said it has entered into strategic cooperation agreements with several crypto-mining companies in Kazakhstan and deployed 10,300 units of AvalonMiner in the country.

Bitcoin and other major cryptocurrencies fell sharply on Wednesday amid concerns that the US Federal Reserve may raise interest rates sooner than expected.

price movement: Bitcoin is down 7.0% in the past 24 hours and is trading at $43,021.99 at the time of writing.

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